PayPal's Value: $120+ Per Share Not Unreasonable Amidst Industry Shift

PayPal is poised for significant growth as the global payments industry shifts towards digital wallets and cross-border commerce. With the rise of e-commerce and declining use of cash, PayPal's services are becoming increasingly relevant. The company's strong position in the market, combined with its ability to adapt to changing consumer habits, makes it a promising investment opportunity. Shares above $120 are not unreasonable.

PayPal has introduced "Pay with Crypto," a new feature allowing U.S. businesses to accept over 100 cryptocurrencies, including major assets like Bitcoin and Ethereum [1]. This expansion aims to enhance financial efficiency for merchants by significantly reducing transaction fees. The service charges a flat fee of 0.99%, compared to the typical 1.5%-3.5% fees associated with credit card transactions [1].

The new system enables businesses to link their crypto wallets, pay with any token, and convert funds into stable value within seconds. This feature is expected to boost merchant adoption of crypto payments across various industries. PayPal's long-standing expertise in digital payments is evident in this initiative, which builds on its initial crypto services launched in 2020 [1].

The introduction of "Pay with Crypto" comes at a time when the global payments industry is shifting towards digital wallets and cross-border commerce. The rise of e-commerce and the declining use of cash further underscore PayPal's relevance. The company's strategic commitment to innovation positions it to reshape how businesses handle transactions, blending traditional finance with emerging digital assets [1].

PayPal's competitive fee structure and broad asset support could influence merchant preferences and drive broader acceptance of crypto-based payment systems. The use of PayPal USD (PYUSD) for conversions also points to a potential increase in the utilization of stablecoins for settlement purposes [1].

Institutional investors have shown confidence in PayPal's growth potential. Nuveen LLC, for instance, purchased a significant stake in PayPal shares during the first quarter of 2025 [3]. Other major investors like Capital Research Global Investors and Goldman Sachs Group Inc. have also increased their holdings in PayPal, reflecting a bullish outlook on the company's future prospects [3].

PayPal's recent earnings results also indicate strong financial performance. The company reported earnings per share of $1.40 for the quarter, exceeding analysts' consensus estimates. The business had revenue of $8.29 billion for the quarter, with a net margin of 14.49% and a return on equity of 25.35% [3].

As the global payments industry continues to evolve, PayPal's ability to adapt to changing consumer habits and integrate new technologies positions it as a promising investment opportunity. While shares above $120 may seem ambitious, the company's strategic initiatives and strong market position suggest that such growth is not unreasonable [2].

References:
[1] https://www.ainvest.com/news/paypal-launches-crypto-payment-system-businesses-0-99-fee-2508/
[2] https://www.aol.com/paypal-allow-businesses-accept-more-151137113.html
[3] https://www.marketbeat.com/instant-alerts/filing-8111328-shares-in-paypal-holdings-inc-nasdaqpypl-purchased-by-nuveen-llc-2025-08-11/